Satyam Computer Services Limited is back to winning new work,thanks largely to the efforts of the newly constituted Board to restore stakeholder confidence and ensure business continuity. The firm has bagged $250 million worth of purchase orders and work extensions since January 7.
The recent successes include a single order of $50 million,and multiple orders from across industry verticals,technologies and geographies,reflecting an all-round positive trend. More than half of this value comes from new orders,which reinforces the confidence that customers have been sharing with us in our discussions, Chief Executive Officer A S Murthy said.
According to Kiran Karnik,chairman of the Board,the Board is satisfied with the progress of the companys stabilisation programme and said the sustained efforts of Satyamites had helped the company on its road to revival. Deepak Parekh,member of the Board and HDFC chairman,said that the Board today approved the process to be followed for inviting a strategic investor and decided to seek regulatory approvals early next week. Upon receiving these clearances,the Board would announce the process to be observed, said Parekh.
The Board had recommended to the Ministry of Corporate Affairs for the removal of Price Waterhouse (PW) as the statutory auditors of the company and notified PW,he said. PW has tendered its resignation to act as statutory auditors of the company. The company is now intending to appoint new statutory auditors.
The Board has authorised its CEO,AS Murty to finalise and implement a retention plan for its key associates (in consultation with Boston Consulting Group and special advisors) and endorsed actions now under way to finetune the expenditure and profit optimisation plan, said C Achuthan,a Board member.
Commenting on the use of funds,T N Manoharan,director,stated,We are using bank funding in a controlled and phased manner to meet immediate and near-term operating requirements,including payments to vendors. The good news is that we are receiving unsolicited offers from banks for funding.
Todays meeting was the seventh since its reconstitution on January 10,2009. Homi Khusrokhan and Partho Datta,special advisors to the Board,legal advisors and senior BCG representatives were also present at the meeting.